Sturm, Ruger & Co. Stock

Discussion in 'Rifle Country' started by Techsan, Jun 6, 2012.

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  1. Techsan

    Techsan Member

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    Any thoughts on what is driving the stock down over the past month, beyond the overall drop in the market? Equities rebounded strongly today, yet RGR lost nearly another 2%. To make this thread "forum appropriate", I read yet another article on the new Ruger American rifle yesterday. If I was in the market for a budget rifle I sure would take a hard look at it.
     
  2. Double Vision

    Double Vision Member

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    Hard to say. The stock market is a big question mark lately.

    I'm with you on the Ruger American. It looks like a nice rifle at that price.
     
  3. RPRNY

    RPRNY Member

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    It doesn't make sense based on publicly available information about Ruger. The firearms market is up and will continue an upward trend through end 2012, Ruger are swamped in terms of production. Even in an uncertain market, this is a good buy. In part because the American will deliver volume for several years to come.
     
  4. greyling22

    greyling22 Member

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    gold is at or near an all time high, yet my precious metals fund is way down. I can't explain the stock market.

    it could be as simple as ruger didn't make as much money as investors thouht they should.
     
  5. browningguy

    browningguy Member

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    I think it was just getting a little ahead of itself at $55, it's back below a P/E of 15 but still high I think. No matter how much we might like Ruger, and gun manufacturers in general, it's still a relatively niche player in the manufacturing industry.

    Remember, 18 months ago (when some of us bought it) it was around $15.25 per share (vs. 36.37 close today).
     
  6. qwert65

    qwert65 Member

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    I think that some are just trying to get out of the market and into metals, binds, etc. personally I'm holding my Ruger stock
     
  7. Matthew Courtney

    Matthew Courtney Member

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    Two things.

    First, as Browning guy pointed out, RGR made a fast run up and got a little ahead of itself.

    Second, President Obama is the best gun salesman since Bill Clinton. Everything that hurts Obamas re-election chances also hurts the outlook for Ruger's 2013 sales.
     
  8. firesky101

    firesky101 Member

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    Since Ruger is not accepting new orders to catch up with production, some investors may be getting out till more profits start flowing in. Just a thought, I don't really know jack about economics.
     
  9. QuietEarp

    QuietEarp Member

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    It looks as if the stock has done well in the past 2 years. I would say that if the stock almost doubled within the last year then the fact that it has declined during the last month is not that surprising.
     
  10. Gtscotty

    Gtscotty Member

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    I agree with yall's assessment of RGR, the stock price has grown so quickly, I think we are in somewhat of a short term correction. That said, Ruger's projected earnings are looking good for the rest of the year. Additionally, the company just came off of a couple month stint where they weren't taking any more orders.

    Now that Ruger has started taking orders again, I think that the Obama based gun-ban fear, combined with the fact that they have recently rolled out an impressive showcase of hugely popular designs suggests that the stock won't be in a dive much longer.

    At least, that's what I'm hoping, I took the opportunity last Friday to buy up some RGR along with a few other stocks while the market was mourning the jobs report.

    I guess we'll find out one way or the other...
     
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